Presentation to Analysts April 2014
Genesis 1964-1976 1994-00 2003-06 2007-14 Set up by an Act of Parliament in 1964 as a subsidiary of the Central Bank (RBI) Ownership transferred to Govt. in 1976 IDBI had been a policy bank in the area of industrial financing and development IDBI Act amended to permit private ownership upto 49%. Domestic IPO in 1995, reduces Govt. stake to 72%. Post capital restructuring in 2000, Govt. stake reduced to 58.5% IDBI Repeal Act passed in December 2003 for conversion to a banking company. Govt. ownership to be not below 51% Amalgamation of IDBI Bank Ltd. With IDBI Ltd. W.e.f. April 2, 2005 Oct. 2006 amalgamated erstwhile UWB. Complete Networking (100% Core Banking) Name changed to IDBI Bank Ltd Achieved regulatory norms of SLR, CME Merged erstwhile subsidiaries IHFL & IGL with the Bank. Govt.stake increased from 52.67% to 65.14% by equity infusion Govt stake increased from 65.14% to 70.52% (equity infusion & conversion of Tier I bonds into equity) Govt stake increased from 70.52% to 76.50% by equity infusion 2
Leading provider of long term finance o Played an apex role in helping create the industrial and infrastructural base in the country o Total Investments generated ` 4000 billion (approx.) (over USD 80 bn) o Significant player in domestic debt syndication. Played a pivotal role in developing institutions that shaped the country s financial architecture o NSE - Electronic Stock Exchange, o NSDL - Securities Depository, o CARE - Rating Agency, o SHCIL - Depository Participant, e-stamping etc. 3 Status as Leading DFI o SIDBI - Funding institution for SSI and ME o Exim Bank- A bank to finance export Import o ARCIL - Asset reconstruction company o NeDFI - For development of North-East Region
Distribution Network Reach 1388 branches; 2301 ATMs 1- Overseas, 319-Metro, 426-Urban, 372-Semi Urban & 270-Rural Presence in 983 locations Network of : o 66 Retail Asset Centres o 6 PSG Processing Centres o 21 Credit Processing Centres o 6 Regional Processing Units o 29 Central Clearing Units 8 Currency Chests across the country Internet banking 4 Regional & 1 Central Training College Corporate customers:3000+ Retail customer base: 6.5 million+ Global expansion plans Initiated the process for setting up Branch Offices at Singapore and Representative Office at Shanghai 4
ADVANCES DEPOSITS NII FEE INCOME OP PROFIT PAT Highlights (Q4FY 14 over Q4FY 13) 197686 235774 1574 875 1850 554 1% 4% 9% 16% 14% 7% 196306 227116 1440 753 1594 518 30.00 25.00 20.00 15.00 10.00 5.00 0.00 NIM 2.20 2.19 22.63 CASA 25.12 9.79 ROE 11.73 0.68 ROA 0.78 Q4 FY13 Q4 FY14 Q4 FY14 Q4 FY13 5
ADVANCES DEPOSITS NII FEE INCOME OP PROFIT PAT Highlights (FY 14 over FY 13) 197686 235774 6021 2463 5681 1882 1% 4% 12% 10% 4% 40% 196306 227116 5373 2205 5458 1121 30.00 25.12 20.00 10.00 0.00 22.63 2.12 2.17 NIM CASA 5.57 ROE 10.39 0.38 ROA 0.69 FY13 FY14 FY14 FY13 6
Balance Sheet As at Mar-14 Mar-13 LIABILITIES Capital 1604 1333 Reserve & Surplus 22035 19903 [Net Worth] 21897 19443 Deposits 235774 227116 Borrowings 60146 65809 Other Liabilities & provisions 9438 8608 Total 328997 322769 ASSETS Cash & balance with RBI 12711 10544 Bal. with banks & money at call 4107 7381 Investments 103774 98801 Advances 197686 196306 Fixed Assets [incl leased assets] 2983 2925 Other Assets 7736 6811 Total 328997 322769 7
Profit & Loss Particulars Quarter Ended FY Ended Mar-14 Mar-13 Mar-14 Mar-13 Interest income 6716 6397 26598 25064 Interest expenses 5141 4957 20576 19691 Net Interest income 1574 1440 6021 5373 Other Income 1151 1147 2979 3220 Total income 2725 2587 9000 8593 Operating Expenses 875 993 3319 3134 - Employee Cost 358 534 1525 1569 - Other Operating Expenses 517 459 1794 1565 Operating Profit 1850 1594 5681 5458 Provisions & contingencies 1332 1040 4560 3576 - NPAs and write offs 1103 669 3074 1996 - Restructured Assets -19 52 486 493 - Others (Invt., Std Asset, etc) 114 148 380 348 - Tax 134 171 620 740 Profit After Tax 518 554 1121 1882 8
Details of Other Income Quarter Ended FY Ended Particulars Mar-14 Mar-13 Mar-14 Mar-13 Commission, Excg & Brkg 639 805 1818 2237 Profit on sale of investments 377 157 522 391 Profit/(Loss) on revaluation of investment -7-14 -1 39 Profit on sale of Fixed Assets 0 0-2 0 Profit on forex/derivatives 70 58 349 193 Dividend from subsidiaries 5 3 28 6 Recovery from written off cases 36 116 130 238 Other misc income 30 23 135 116 Total 1151 1147 2979 3220 Fee Based Income 753 875 2205 2463 9
Details of Operating Expenses Quarter Ended FY Ended Particulars Mar-14 Mar-13 Mar-14 Mar-13 Staff Cost 358 534 1525 1569 Rent, taxes & lighting 92 89 305 281 Printing & stationery 10 10 45 39 Advertisement & Publicity 20 4 40 13 Depreciation 32 41 113 124 Postage, Telegram, Teleph., etc 21 17 92 66 Repairs and maintenance 55 41 207 161 Outsourcing expenses 52 42 162 154 Other expenditure 234 215 829 727 TOTAL 875 993 3319 3134 10
Key Ratios Particulars Quarter Ended FY Ended Mar-14 Mar-13 Mar-14 Mar-13 Net Interest Margin (%) 2.20% 2.19% 2.17% 2.12% Return on Assets (%) 0.68% 0.78% 0.38% 0.69% Return on Equity (%) 9.79% 11.73% 5.57% 10.39% Cost of all liabilities (%) 6.79% 6.97% 6.95% 7.26% Yield on Total Assets (%) 10.39% 10.60% 9.99% 10.43% Margin (%) 3.60% 3.64% 3.04% 3.17% Cost of Funds (%) 7.74% 8.37% 7.87% 8.31% Return on Earning Assets (%) 10.71% 10.88% 10.28% 10.71% Spread (%) 2.97% 2.52% 2.41% 2.40% Non-interest income to Total Income 14.63% 15.20% 10.07% 11.38% Efficiency [Cost- Net Income] Ratio 32.10% 38.38% 36.88% 36.48% Staff Expenses to total income 4.56% 7.07% 5.16% 5.55% Staff Expenses to total expenses 5.96% 8.97% 6.38% 6.88% Overhead efficiency ratio 131.55% 115.53% 89.75% 102.72% 11
Balance Sheet Ratios P a rt i c u l a rs Ma r- 14 Ma r- 13 * Tot al Business [Dep. + Adv.] 433460 423423 S B Deposit s t o Tot al Deposit s 12.02% 10.46% Current Account Deposit s t o Tot al Deposit s 10.61% 14.66% Time Deposit s t o Tot al Deposit s 77.37% 74.88% Book Va lue - Rs. 136.52 145.89 Tot al Off B/ S heet it em t o Tot al Asset s 57.21% 55.97% Owned Funds t o t ot al out side liabilit ies 7.40% 6.64% Tier One Capit al 20984 19960 Tier Two Capit al 10480 14171 Tot al Capit al 31464 34131 Tot al Risk Weight ed Asset s 269471 259901 Tot al Risk Weight ed Asset s t o Tot al Asset s 81.91% 80.52% CRAR Basel III (Tot al) 11.68% 13.13% Common Equit y Tier 1 7.78% 7.68% Addit ional Tier 1 0.01% NA Tier 2 Rat io 3.89% 5.45% Number Of Account s (i) S avings 8044270 6741025 (ii) Current 556095 482325 (iii) Term deposit s 2204002 1912513 *Figures of CRAR for March 2013 are as per Basel II 12
NPAs Particulars Mar-14 Mar-13 Gross Advances 203376 200135 Gross NPAs 9960 6450 Gross NPAs as % of Gross Advances 4.90% 3.22% T otal Provisions held (including NPV Loss) 5690 3253 Net Advances 197686 196306 Net NPAs 4902 3100 Net NPAs as % of Net Advances 2.48% 1.58% Provision Coverage Ratio 51.53% 53.67% Provision Coverage Ratio as per RBI Guidelines * 64.53% 70.83% * including Prudential written off cases Sectoral Net NPAs Agri and Allied Activities Industry (Micro, Small, Medium & Large) Services Personal Loans Others % 7.07 3.18 2.47 0.45 1.44 13
Summary of NPAs as on March 31, 2014 For the Quarter Gross NPA NPA Provision & NPV Net NPA Loss As on 01.01.2014 10012 4789 5223 Additions (First Time NPA) 2041 1386 655 Less: (i) Upgradations 167 142 25 (ii) Recoveries 1099 148 951 (iii) Write off 827 827 0 As on 31.03.2014 9960 5058 4902 For the Year Gross NPA Provision Net NPA As on 01.04.2013 6450 3350 3100 Additions (First Time NPA) 5706 3323 2383 Less: (i) Upgradations 37 122-85 (ii) Recoveries 766 100 666 (iii) Write off 1393 1393 0 As on 31.03.2014 9960 5058 4902 14
Classification of NPAs as on March 31, 2014 Gross NPA Provision NPV Loss Net NPA % of Provision to Gross NPA Sub Standard Assets 2902 922 8 1971 31.78 Doubtful Assets 6724 3717 76 2931 55.28 Loss Assets 334 334 0 0 100.00 Total* 9960 4974 84 4902 49.94 * Excluding Countercyclical Provisioning Buffer 15
Break up of Provisions & Contingencies Particulars Quarter ended FY ended Mar-14 Mar-13 Mar-14 Mar-13 Depreciation on investment 1 86 180 155 Provision for NPAs 276 298 1681 1613 Provision towards standard assets* 105 40 173 172 Provision for Restructured Assets (including FITL) -19 52 486 493 Income Tax 192 378 1169 1519 Deferred Tax -58-207 -550-779 Bad Debts Writen off 828 371 1393 383 Others 7 22 27 21 Total 1332 1040 4560 3576 16
Liabilities Deposits Mar-14 Mar-13 Current 25018 33289 Savings 28334 23760 Term 182422 170067 Total 235774 227116 Maturity Profile Amount Upto 6 months 92006 6 months -1 year 60124 1 year - 3 years 82576 3 years - 5 years 23450 > 5 years 37764 Total 295920 Borrowings Mar-14 Mar-13 Tier I 1709 2559 Tier II 14566 14582 Others 20144 26251 Outside India 23728 22417 Total 60146 65809 17
Advances Vertical Mar-14 Mar-13 CBG 94522 100019 ICG 48884 46172 PSG 16764 16754 RBG 36933 32709 RECRY 583 652 Grand Total 197686 196306 Nature Mar-14 Mar-13 Bills 4884 4619 CC, OD,WCDL ETC 52099 50885 Term Loans- Other 140704 140803 Total 197686 196306 Top 20 Borrowers 22768 Maturity Profile Advances Upto 6 months 23824 > 6 months to 1 year 12037 > 1 year to 3 years 81331 > 3 years to 5 years 27885 > 5 years 52609 Total 197686 18
Advances Industry Outstanding Committed FB NFB TOTAL FB NFB TOTAL POWER 21864 8721 30585 33615 14785 48400 OIL & GAS/PETROLEUM PRODUCTS 9834 8765 18598 13579 16173 29752 INFRASTRUCTURE OTHERS 11420 10,481 21901 15165 13,677 28842 ROADS & BRIDGES / PORTS 13748 5588 19336 17558 10415 27973 IRON AND STEEL 11787 4704 16491 13895 8204 22099 TELECOM 6523 3026 9550 7884 7363 15247 NBFC 10257 440 10698 13109 1219 14328 TEXTILES 6602 1241 7843 8438 1722 10159 TRADING 2736 1951 4687 4133 5940 10073 GENERAL MACHINERY & EQUIPMENTS 2650 5772 8422 3581 6425 10006 CONSTRUCTION 1365 5978 7343 1760 7498 9258 BANKING 391 1594 1986 1247 7593 8840 CEMENT 6373 794 7167 7108 1149 8257 FINANCIAL SERVICES ( OTHER THAN BANKS & NBFCs) 847 151 997 3828 4175 8004 CHEMICAL & CHEMICAL PRODUCTS 2041 2234 4275 4613 3347 7960 HOUSING FINANCE COMPANIES 6003 6003 7631 7631 FERTILIZERS 2313 1378 3691 3974 3530 7504 ELECTRICAL MACHINERY & EQUIPMENTS 1106 2716 3822 1543 4482 6025 SUGAR & SUGAR PRODUCTS 2650 978 3628 4026 1638 5665 METALS AND METAL PRODUCTS(OTHER THAN MFG.OF BASIC IRON AND STEEL) 1131 2404 3535 1788 3765 5553 TOTAL 121642 68914 190556 168475 123102 291576 19
Summary of Restructured Advances as on March 31, 2014 Particulars PA NPA Total Gross 15792 3263 19055 Less: FIT L Provision 1028 266 1294 Net of FITL Provision 14764 2996 17760 Less: Cases considered for Provisioning @ 0.40% 2308 0 2308 Total 12456 2996 15452 20
Industry wise Restructured Advances Industry Net O utstanding March 2014 Net O utstanding March 2013 Industry Net O utstanding March 2014 Net O utstanding March 2013 AGRO INDUST RIES 269 304 JEWELLERY MFG 18 26 AIR T RANSPORT 1 185 1 187 MET AL INDUST RY 1 219 1 119 AQUACULT URE 80 74 MINING AND QUARRYING 41 51 CEMENT 30 109 MISC. INDUST RY 120 90 CERAMIC INDUSTRY 99 110 MOTOR VEHICLES 305 59 CHEMICAL AND FERT ILIZERS 83 80 OIL EXPLORAT ION 96 96 COAL 23 8 OTHER SERVICES 45 40 DAIRY FARM AND POULTRY 4 4 PAPER 155 136 EDUCAT ION 64 460 PHARMACEUT ICALS 305 262 ELECTRICAL MACHINERY 1 372 1 416 PLASTIC 0 1 ELECT RICIT Y GENERAT ION 1 814 1 359 PLAST IC PRODUCT S 38 35 ELECTRONICS 124 182 REAL ESTATE 0 51 ENT ERT AINMENT 36 40 RET AIL ST ORE 106 41 FINANCIAL SERVICES 0 5 RUBBER 2 4 FOOD AND BEVERAGES 120 346 SHIP BUILDING 546 274 GLASS MFG 65 0 SUGAR 362 517 HEALT H CARE 19 21 T ELECOMMUNICAT IONS 915 1 185 HOT EL 375 141 T EXT ILES 1 293 1 276 INFRASTRUCTURE 3 644 1 784 TRANSPORT SERVICES 3 3 IRON AND ST EEL 463 426 WAST E MANAGEMENT 15 16 IT 0 223 Total 15 452 13 564 21
PA to NPA out of Restructured Advances as on March 31, 2014 Net Outstanding 2014 Net Outstanding 2013 Industry Net Outstanding 2014 Net Outstanding 2013 Industry AGRO INDUSTRIES 99 116 IT 0 27 AIR TRANSPORT 696 696 METAL INDUSTRY 135 41 AQUACULTURE 8 4 MINING AND QUARRYING 3 19 CEMENT 7 5 MISC. INDUSTRY 10 3 CERAMIC INDUSTRY 3 0 MOTOR VEHICLES 51 55 CHEMICAL & FERTILIZERS 0 2 OTHER SERVICES 2 16 DAIRY FARM AND POULTRY 2 0 PAPER 9 1 EDUCATION 41 32 PHARMACEUTICALS 0 2 ELECTRICAL MACHINERY 57 75 PLASTIC PRODUCTS 35 0 ELECTRICITY GENERATION 138 0 REAL ESTATE 0 50 ELECTRONICS 43 156 RETAIL STORE 73 7 ENTERTAINMENT 5 4 RUBBER 0 1 FOOD & BEVERAGES 27 56 SHIP BUILDING 1 0 HEALTH CARE 2 2 SUGAR 23 95 HOTEL 5 14 TELECOMMUNICATIONS 80 246 INFRASTRUCTURE 412 61 TEXTILES 675 3 IRON AND STEEL 1 0 TRANSPORT SERVICES 3 0 Total 2645 1791 22
Investments C ate gory HTM AFS HFT Total Government securities 55484 5905 894 62283 SASF Securities 4691 0 0 4691 Shares (Equity) 0 2565 0 2565 Shares (Preference) 0 528 0 528 Debentures/ Bonds 10 14102 0 14112 Subsidiaries / Joint Ventures 644 0 0 644 Security Receipts 0 33 0 33 Others (CPs/CDs/MF) etc 18438 118 362 18918 Total 79267 23250 1256 103774 23
List of Some Strategic Investments Name of Company Percentage Holding IDBI CAPITAL MARKET SERVICES LIMITED 100.00 IDBI INTECH LIMITED 100.00 IDBI MF TRUSTEE COMPANY LTD. 100.00 IDBI ASSET MANAGEMENT LTD. 65.22 IDBI TRUSTEESHIP SERVICES LIMITED 54.70 IDBI FEDERAL LIFE INSURANCE COMPANY LIMITED 48.00 NATIONAL SECURITIES DEPOSITORY LIMITED 30.00 NSDL E-GOVERNANCE INFRASTRUTURE LIMITED 30.00 BIOTECH CONSORTIUM INDIA LIMITED 27.93 NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LIMITED 25.00 PONDICHERRY INDUSTRIAL PROMOTION DEVELOPMENT AND INVT CORP LTD 21.14 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA 19.21 ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED 19.18 contd... 24
List of Some Strategic Investments Name of Company Percentage Holding OTC EXCHANGE OF INDIA LIMITED 17.00 CREDIT ANALYSIS AND RESEARCH LIMITED 16.62 EDC LIMITED 11.43 NEPAL DEVELOPMENT BANK LIMITED 10.00 UNIVERSAL COMMODITY EXCHANGE LTD. 10.00 CLEARING CORPORATION OF INDIA LIMITED 7.50 CORDEX INDIA PVT. LTD. 7.14 STCI FINANCE LIMITED 6.60 NATIONAL STOCK EXCHANGE OF INDIA LIMITED 5.00 UNITED STOCK EXCHANGE OF INDIA LIMITED 0.97 CENTRAL REGISTRY OF SECRTSN ASSET RECONSTR & SECRT INTEREST OF INDIA 0.90 25
Summarised Financial Information of the Subsidiaries Particulars IDBI Capital Market Services Ltd. IDBI Asset Management Company Ltd IDBI MF Trustee Company Ltd. IDBI Intech Ltd. IDBI Trusteeship Services Ltd. Capital 128.10 115.00 0.20 13.13 6.03 Reserves 186.13-85.58 0.48 16.32 90.30 Total Assets 343.35 36.59 0.71 32.03 143.32 Total Liabilities (excluding Capital & Reserves) 29.12 7.17 0.03 2.58 46.99 Investments 134.72 26.80 0.60 0.00 0.00 Turnover 93.59 20.75 0.55 78.71 56.31 Profit before taxation 31.21-18.82 0.21 2.27 48.22 Tax 13.74 1.70 0.06 1.58 16.30 Profit after taxation 17.46-20.53 0.15 0.68 31.92 Interim Dividend (%) 0 0 0 0 155% Proposed Dividend (%) 10% 0 0 0 70% 26
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